August 21, 2018

How Banks Are Using Strategic Pricing to Empower their Customers

Strategic pricing enhances customer acquisition, retention, and satisfaction across all industries, whether it’s hospitality and travel, or retail goods. In a new era of banking, where interest rates are quickly rising, banks need to consider strategic pricing to maintain customer stickiness and remain profitable. With strategic pricing, banks can customize the fees customers pay and offer them individualized rates based on their banking profiles to create a more personalized banking experience. Using pricing to incentivize client behavior not only offers increased savings but also establishes loyalty – something banks are desperate for. What is strategic pricing? At its foundation, strategic pricing is flexible/dynamic pricing based on current market demands. It is second nature to industries like hospitality, travel, and retail goods, as algorithms account for competitive pricing, supply & demand, time of day, and on-demand service spikes to affect an ever-changing, real-time price, and profit margin. In financial services, dynamic…

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